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description Research paper public Trisakti School of Management

FACTORS AFFECTING AUDIT QUALITY IN NON-FINANCIAL COMPANIES REGISTERED IN INDONESIA STOCK EXCHANGE

Lionni Lionni, Ita Trisnawati
Published 28 August 2020

Abstract

The performance of every existing company, can be assessed through the company's annual financial statements, so the financial statements become very important for investors and for management. Therefore, the financial statements must represent the real financial condition of the company, so they can be free from fraud and material misstatement. The purpose of this study is to obtain empirical evidence about the factors that influence audit quality, namely company size, financial leverage, return on assets, company growth, company age, changes in audit opinion, auditor gender, auditor tenure and reputation of public accounting firm. The object of research in this study is non-financial companies listed on the Indonesia Stock Exchange in 2015 to 2018. The method used is purposive sampling method with non-probability sampling. Data were analyzed by multiple regression methods. Empirical evidence shows that the financial leverage and company growth have positive correlation on audit quality while company size and return on assets have negative correlation on audit quality. Empirical evidence also shows that changes in audit opinion, auditor gender, auditor tenure, and reputation of public accounting firm have no effect on audit quality.

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  • visibility 209 views
  • get_app 126 downloads